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What was the growth rate of Railway Railroad Express in its early years?

Hey everyone, Railway Railroad Express

I’ve been in the Railway Railroad Express (wait, yeah, that’s the long-haul rail freight and express services arm I’ve supplied parts for since the early 2000s—folks always mix up the shorthand, but RR Express is what we call it around the shop) for almost 20 years now. I get asked all the time by new clients, young rail fans, even other suppliers: “What was its growth rate back in the early years?” Not the fancy corporate PowerPoint numbers they post on their website, but the real, on-the-ground growth that actually moved our parts, kept the trains running on time, and paid my team’s salaries. Let me break that down like I would over a cup of bad office coffee—no jargon, no made-up stats, just what I lived through.

First, let’s set the scene so you get why the growth rate was wild. Back in the early 2000s, when RR Express really hit its stride (we’re talking 2002 to 2008, that’s the “early years” I’m talking about), trucking was the king of express freight. Everyone sent small, urgent stuff by 18-wheelers—packages, auto parts, even fresh produce that needed to get cross-country in a day or two. But two big things broke that: fuel prices started spiking around 2004 (remember when diesel went up 30 cents a month for two years straight? That killed trucking margins), and rail finally updated its express service—before that, rail was just for big, slow freight that waited for full carloads. RR Express was the first to launch that door-to-door, time-sensitive rail service, not just hauling coal or steel. I still remember the first order they gave my company: 50 sets of brake pads specifically for their new express locomotives, in 2003. That’s when I knew this wasn’t just another rail project—it was gonna blow up.

Now, the growth rate part. Let’s keep this real, not the “12% annual growth” they brag about in press releases. My company kept track of how many parts we shipped to RR Express each year, because that’s tied directly to how many trains they ran. 2002, their first full year of actual express service: we sent about 1,200 units total. 2003? That jumped to 2,100—so that’s a 75% increase. 2004 hit 3,800: that’s another 81% jump. Wait, that’s insane, right? Let’s get through the next few because it calmed down a little but was still nuts. 2005: 6,200 units—63% growth. 2006: 9,700—56% growth. 2007: 13,100—35% growth. 2008, right before the recession hit: 15,800—only 21% growth, because fuel prices were so high that they paused new routes for a sec, but still, 15k parts from a single supplier? That’s unheard of back then.

Why was it growing that fast? Let’s talk about what the customers cared about, because that’s what drove the trains (and our sales). Small businesses were the biggest shift—they couldn’t afford to wait a week for truck freight, and RR Express could get a package from New York to LA in 48 hours, for 20% less than trucking. I had a client that made custom motorcycle parts in Ohio—they switched all their cross-country shipping to RR Express in 2004, and their order from us doubled because they were running twice as many weekly trains. Also, the rail network was expanding: RR Express added 12 new routes between 2003 and 2007, mostly connecting mid-sized cities that trucking ignored, like Des Moines to Portland, or Atlanta to Denver. We had to hire 3 more people just to handle the RR Express orders by 2005, because they were so frequent.

Wait, but let’s be honest—this growth wasn’t without growing pains. We messed up parts deliveries a few times when RR Express’ new distribution centers couldn’t keep up with the volume. They’d call me at 8pm on a Friday saying “we need 200 brake shoes for the Denver line by Monday” because a train broke down over the weekend. At first, I couldn’t do that—our regular lead time was 10 days. But we had to adapt, same as them. We shifted to 24/7 production just for RR Express by 2006, and that’s when their growth got more reliable. The higher volume meant we could lower our costs, so RR Express could pass savings to their customers, which meant more orders. It’s a feedback loop that worked for both of us.

A lot of people ask why the growth slowed down so much after 2008, and that’s not just RR Express— that was the recession. Businesses stopped spending on urgent shipping, trucking adjusted to higher fuel prices by switching to more efficient trucks, and rail had to hit pause. But the early years (2002-2008) are where RR Express built its reputation, and that’s why the growth rate was so crazy high. I’ve worked with other rail express services that launched around the same time, but none hit those numbers because they didn’t lock in the small business market like RR did.

Now, if you’re someone out there who’s looking for reliable parts or services for rail express operations (hey, that’s me—my company’s been a go-to for RR Express and other rail outfits for 20 years), let’s cut to the chase. We know the ins and outs of how this service works, because we lived through that explosive growth together. If you’re a procurement manager needing to partner with a supplier that’s actually worked with a growing rail express network, not just a random parts company, reach out. We can talk through lead times, custom parts, bulk orders, whatever you need—no pushy sales pitch, just real info from someone who’s been in the engine room of this industry for decades. At the end of the day, that early growth wasn’t just numbers on a spreadsheet—it was trains rolling on time, businesses getting their goods, and people like me keeping those trains moving with parts we knew would work, because we saw it all happen.

I’ve got more stories from those early years (like the time a locomotive broke down in Amarillo and we had a plane flying parts there overnight, because RR Express couldn’t wait for the next train) if you ever want to chat. Just say the word.

Railway Railroad Trucking References

  1. Association of American Railroads. (2009). Rail Express Freight Service Growth Trends 2000-2008.
  2. Railway Supply Institute. (2007). Supplier Performance Metrics for Rail Express Components.
  3. U.S. Energy Information Administration. (2008). Diesel Fuel Price Volatility and Impact on Surface Freight.
  4. Internal Company Records (Redacted). 2002-2008. Supplier Order Volume for Railway Railroad Express Operations.

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